Stock Analysis

Should Melcor Developments Ltd. (TSE:MRD) Be Your Next Stock Pick?

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Melcor Developments Ltd. (TSE:MRD) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of MRD, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Melcor Developments here.

Adequate balance sheet average dividend payer

MRD's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that MRD has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Debt funding requires timely payments on interest to lenders. MRD’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

TSX:MRD Historical Debt, October 12th 2019
TSX:MRD Historical Debt, October 12th 2019

For those seeking income streams from their portfolio, MRD is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.9%.

TSX:MRD Historical Dividend Yield, October 12th 2019
TSX:MRD Historical Dividend Yield, October 12th 2019

Next Steps:

For Melcor Developments, I've put together three important factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for MRD’s future growth? Take a look at our free research report of analyst consensus for MRD’s outlook.
  2. Historical Performance: What has MRD's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MRD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.